Quotes & Info
|ADI > SEC Filings for ADI > Form 10-K on 27-Nov-2012||All Recent SEC Filings|
During the first quarter of fiscal 2008, we sold our baseband chipset business
and related support operations, or Baseband Chipset Business, to MediaTek Inc.
and sold our CPU voltage regulation and PC thermal monitoring business to
certain subsidiaries of ON Semiconductor Corporation. The financial results of
these businesses are presented as discontinued operations in the consolidated
statements of income for all periods presented. Unless otherwise noted, this
Management's Discussion and Analysis relates only to financial results from
Results of Operations Overview Fiscal Year 2012 over 2011 2011 over 2010 2012 2011 2010 $ Change % Change $ Change % Change Revenue $ 2,701,142 $ 2,993,320 $ 2,761,503 $ (292,178 ) (10 )% $ 231,817 8 % Gross Margin % 64.5 % 66.4 % 65.2 % Net income from Continuing Operations $ 651,236 $ 860,894 $ 711,225 $ (209,658 ) (24 )% $ 149,669 21 % Net income from Continuing Operations as a % of Revenue 24.1 % 28.8 % 25.8 % Diluted EPS from Continuing Operations $ 2.13 $ 2.79 $ 2.33 $ (0.66 ) (24 )% $ 0.46 20 % Diluted EPS $ 2.13 $ 2.81 $ 2.33 $ (0.68 ) (24 )% $ 0.48 21 %
Fiscal 2012 was a 53-week year. Fiscal 2011 and fiscal 2010 were 52-week years.
The additional week in fiscal 2012 was included in the first quarter ended
February 4, 2012.
The year-to-year revenue changes by end market and product category are more fully outlined below under Revenue Trends by End Market and Revenue Trends by Product Type.
During fiscal 2012, our revenue decreased 10% compared to fiscal 2011. Our diluted earnings per share from continuing operations decreased to $2.13 in fiscal 2012 from $2.79 in fiscal 2011. Cash flow from operations in fiscal 2012 was $814.5 million, or 30.2% of revenue. During fiscal 2012, we received $191.2 million in net proceeds from employee stock option exercises, repurchased a total of approximately 4.2 million shares of our common stock for an aggregate of $160.5 million, distributed $344.7 million to our shareholders in dividend payments, paid $56.5 million in principal payments related to our $145.0 million term loan facility, paid $132.2 million for property, plant and equipment additions and paid $24.2 million, net of cash acquired, for the acquisition of Multigig. In addition, we paid $1,183.5 million for the net purchase of short term available-for-sale investments. These factors contributed to the net decrease in cash and cash equivalents of $876.3 million in fiscal 2012. The year-to-year decrease in revenue and profitability for fiscal 2012 was primarily the result of continued slowdown in the growth of the global economy. Our customers were increasingly cautious through the year and reduced the inventory levels of our products. We believe that our variable cost structure and continued efforts to manage production, inventory levels and expenses helped to mitigate the effect that these lower sales levels had on our earnings.
Revenue Trends by End Market The following table summarizes revenue by end market. The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the "sold to" customer information, the "ship to" customer information and the end customer product or application into which our product will be incorporated. As data systems for capturing and tracking this data evolve and improve, the categorization of products by end market can vary over time. When this occurs, we reclassify revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market. 2012 2011 2010 % of % of % of Total Total Total Product Product Product Revenue Revenue Y/Y% Revenue Revenue Revenue Revenue Industrial $ 1,240,344 46 % (12 )% $ 1,411,386 47 % $ 1,280,027 46 % Automotive 463,577 17 % 11 % 417,929 14 % 335,163 12 % Consumer 467,626 17 % (16 )% 559,142 19 % 605,541 22 % Communications 529,595 20 % (12 )% 604,863 20 % 540,772 20 % Total Revenue $ 2,701,142 100 % (10 )% $ 2,993,320 100 % $ 2,761,503 100 %
Industrial - The year-to-year decrease in revenue from fiscal 2011 to fiscal
2012 in industrial end market revenue was primarily the result of a broad-based
decrease in demand in this end market related to ongoing global macro-economic
weakness. The year-to-year decrease was most significant for products sold into
the industrial automation and instrumentation sectors. The year-to-year increase
in revenue from fiscal 2010 to fiscal 2011 in industrial end market revenue was
primarily the result of a broad-based increase in demand in this end market,
which was most significant for products sold into the automation and
instrumentation sectors and, to a lesser extent, products sold into the energy
and healthcare sectors.
Automotive - The year-to-year increase in revenue from fiscal 2011 to fiscal 2012 in automotive end market revenue was primarily the result of an increase in the electronic content in automobiles used in infotainment applications and to a lesser extent in power train and safety applications and a general increase in demand by our customers. The year-to-year increase in revenue from fiscal 2010 to fiscal 2011 in automotive end market revenue was primarily the result of a general increase in the electronic content found in vehicles and, to a lesser extent, a general increase in demand by our customers.
Consumer - The year-to-year decrease in revenue from fiscal 2011 to fiscal 2012 in consumer end market revenue was primarily the result of a broad-based decrease in demand for products sold in this end market. The year-to-year decrease in revenue from fiscal 2010 to fiscal 2011 in consumer end market revenue was primarily the result of a decrease in demand for products in the digital camera and home entertainment sector primarily as a result of the impact of the earthquake and tsunami that occurred in Japan in March 2011, partially offset by an increase in demand for products used in portable devices in this end market.
Communications - The year-to-year fluctuations in communications end market revenue for the years presented are primarily the result of broad-based demand shifts in this end market, which were most significant for products sold into the wireless base station end market sector.
Revenue Trends by Product Type
The following table summarizes revenue by product categories. The categorization of our products into broad categories is based on the characteristics of the individual products, the specification of the products and in some cases the specific uses that certain products have within applications. The categorization of products into categories is therefore subject to judgment in some cases and can vary over time. In instances where products move between product categories, we reclassify the amounts in the product categories for all prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each product category.
2012 2011 2010 % of % of % of Total Total Total Product Product Product Revenue Revenue* Y/Y% Revenue Revenue Revenue Revenue Converters $ 1,192,064 44 % (11 )% $ 1,343,487 45 % $ 1,295,700 47 % Amplifiers/Radio frequency 697,687 26 % (11 )% 788,299 26 % 701,557 25 % Other analog 397,376 15 % (3 )% 410,323 14 % 334,663 12 % Subtotal analog signal processing 2,287,127 85 % (10 )% 2,542,109 85 % 2,331,920 84 % Power management & reference 182,134 7 % (16 )% 217,615 7 % 194,740 7 % Total analog products $ 2,469,261 91 % (11 )% $ 2,759,724 92 % $ 2,526,660 91 % Digital signal processing 231,881 9 % (1 )% 233,596 8 % 234,843 9 % Total Revenue $ 2,701,142 100 % (10 )% $ 2,993,320 100 % $ 2,761,503 100 % _____________________________________